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Summary of

Securities Act (Advertisements Containing Investment Advice) Exemption Notice 2002

2002/294

Gazetted on 19 September 2002
Expires on 30 September 2007

This notice replaces the Securities Act (Advertisements Containing Investment Advice) Exemption Notice (No 2) 1997 (the 1997 notice). It carries forward the provisions of the 1997 notice without any change of substance, but with certain drafting changes which reflect current drafting practice.

Effects of the exemption
The notice enables financial institutions and other issuers of securities to give certain investment advice without the need for a certificate under regulation 17.

Context
Regulation 17 requires that a certificate signed by an issuer's directors stating that they have read, seen or listened to the advertisement, that it is not likely to deceive, mislead or confuse investors, and that it is consistent with the prospectus for the securities, must be completed when the advertisement is distributed.

The exemption applies to an advertisement which

• is distributed to a customer or client of the issuer or a related company; and
• contains advice about the offer of securities being made, together with financial information or other information that is personal to the person to whom the advertisement is distributed; and
• has been prepared by an employee who gives investment advice to customers or clients of the issuer or a related company.

The exemption
Issuers of securities are exempted, subject to conditions, from regulation 17 of the Regulations for the distribution of any advertisement to which this notice applies.

Conditions
The exemption is subject to the conditions that

• the information in the advertisement, except the personalised advice and information, is also contained in
  • a current registered prospectus or current disclosure statement for the offer; or
  • an investment statement or other authorised advertisement for the offer that complies with regulation 17; and
• if the advertisement contains prospective financial information, the advertisement states the assumptions on which that information is based.

Reasons
The Commission reviewed the 1997 notice and received submissions from interested parties. The exemptions in the 1997 notice were found to be relevant and useful and the terms and conditions of exemption are appropriate. The exemption reflects current Commission policy.